Background and circumstances of the matter (including the property/subject matter under dispute): Based on violations of the Securities Investor and Futures Trader Protection Act (Chapter 10-1, No. 2, Section 1), SFIPC requested the court to order a dismissal of Dr. Michael N. Chang as the Chairman of the company.

Course and progression of handling of the matter: The company will consult its legal counsel on appropriate legal responses.

Effect on company finances and business and estimated monetary amount of the effect: The business operation and financial status of the company are normal.